FX.co ★ US 10-Year Yield Holds Decline

The yield on the 10-year US Treasury note stabilized around 4.33% on Thursday following a significant decline in the previous session, largely due to robust demand during a recent 10-year bond auction. The Federal Reserve's latest meeting minutes indicated that a majority of policymakers were amenable to the possibility of reducing interest rates later this year. Additionally, the bond markets reacted to President Donald Trump's proposal that the Fed funds rate should be reduced by 300 basis points, which in turn, heightened expectations of prolonged inflation and sparked discussions about a potential dovish Fed nominee in 2026. Meanwhile, on trade matters, Trump declared a 50% tariff on Brazilian imports starting August 1, citing reasons of unfair trade practices. He also announced tariffs ranging from 25% to 30% on imports from the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka, with these duties coming into effect on the same date. Market participants are now turning their attention to prospective trade deals with India and the European Union.